System and method for facilitating account-based transactions

ABSTRACT

Systems, methods and apparatus are presented for facilitating account-based transactions. In an embodiment, the method includes associating a first person with an account, associating a second person with the account, receiving a request from a third party to authorize a transaction between the second person and the third party, determining a first communication address of the first party, and contacting the first party. The process also includes determining that the first person desires to communicate with the second person, determining a second communication address of the second person, initiating a communication between the first person and the second person, and receiving a signal from the first person that authorizes the transaction or declines the transaction.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.13/531,677 filed Jun. 25, 2012 and entitled “SYSTEM AND METHOD FORFACILITATING ACCOUNT-BASED TRANSACTIONS”; which is a continuation ofU.S. patent application Ser. No. 12/245,995 filed Oct. 6, 2008 andissued as U.S. Pat. No. 8,208,612 on Jun. 26, 201;, which is acontinuation of U.S. Pat. No. 10/603,110 filed Jun. 24, 2003 and issuedas U.S. Pat. No. 7,433,451 on Oct. 7, 2008; which is acontinuation-in-part of U.S. patent application Ser. No. 09/994,569filed Nov. 27, 2001 and issued as U.S. Pat. No. 6,597,770 on Jul. 22,2003; which is a continuation-in-part of U.S. patent application Ser.No. 09/417,182 entitled “METHOD AND SYSTEM FOR CONTROLLING AUTHORIZATIONOF CREDIT CARD TRANSACTIONS” filed Oct. 12, 1999 and issued U.S. Pat.No. 6,327,348 on Dec. 4, 2001; which is a continuation of U.S. patentapplication Ser. No. 09/036,131 entitled “METHOD AND SYSTEM FORCONTROLLING AUTHORIZATION OF CREDIT CARD TRANSACTIONS” filed Mar. 6,1998 and issued as U.S. Pat. No. 5,999,596 on Dec. 7, 1999. Each of theabove applications is incorporated herein by reference.

FIELD OF THE INVENTION

The present invention relates to a method and system for enabling afirst person who holds a transaction card account to communicate with asecond person who is associated with the account.

BACKGROUND OF THE INVENTION

A bank or other issuer issues transaction cards having correspondingcard accounts to individuals (hereafter, “account holders”). Forexample, an account holder may use his credit card to purchase goodsand/or services (collectively, “goods”) from one or more merchants in anaggregate amount that may not exceed the credit line for the account.

It is common for an account holder to permit another person (hereafter,“user”) to purchase goods using a credit card that is associated withthe account holder's account. When doing so, however, it is possiblethat the user may abuse privileges afforded by the credit card.

BRIEF DESCRIPTION OF THE DRAWINGS

Representative embodiments of the present invention will be describedwith reference to the following figures:

FIG. 1 is a schematic illustration of an exemplary apparatus forfacilitating communication between first and second persons;

FIG. 2 is a diagrammatic representation of an exemplary server of theapparatus of FIG. 1;

FIG. 3 illustrates an exemplary credit card account database of theserver of the apparatus of FIG. 2;

FIG. 4 illustrates an exemplary merchant database of the server of theapparatus of FIG. 2;

FIG. 5 illustrates an exemplary user database of the server of theapparatus of FIG. 2;

FIG. 6 illustrates an exemplary transaction database of the server ofthe apparatus of FIG. 2; and

FIGS. 7A and 7B illustrate an exemplary process for processing a creditcard transaction and for facilitating communication between first andsecond persons.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

A first aspect of the present invention is directed to a method forfacilitating communication between a first person and a second person.The method comprises the steps of associating the first and secondpersons with a financial account, receiving data identifying thefinancial account, inquiring whether the first person desires tocommunicate with the second person, receiving a response to the inquiry,and initiating communication between the first and second persons basedon the response. In some embodiments, the method further includesreceiving from the first person an indication of whether a transactionbetween the second person and a third party (e.g., a merchant) should beauthorized. For example, the first person may decide to authorize such atransaction based on the communication between the first person and thesecond person.

A second aspect of the present invention is directed to a method forfacilitating communication between a first person (e.g., an accountholder) and a second person (e.g., a user) so that the first person mayauthorize a transaction between the second person and a third party(e.g., a merchant). The method comprises the steps of associating thefirst and second persons with a financial account that is used for thetransaction, receiving data from the third party identifying thefinancial account and the third party, inquiring whether the firstperson desires to communicate with the second person based on the dataidentifying the financial account, receiving a response to the inquiry,and initiating communication between the first and second persons basedon the response.

A third aspect of this invention is directed to a method forfacilitating communication between first and second persons so that thefirst person may authorize a transaction between the second person and athird party. The method comprises the steps of associating the first andsecond persons with a financial account that is used for thetransaction, receiving data identifying the financial account and thethird party from the third party, accessing a database based on the dataidentifying the financial account to determine a first communicationaddress (e.g., a telephone number; an email address) of the firstperson, and communicating with the first person based on thecommunication address to inquire whether the first person desires tocommunicate with the second person. At least one second communicationaddress is determined. For example, a communication address of the thirdparty (e.g., a merchant's telephone number) may be determined, enablingcommunication with the second person if the second person is at a thirdparty's location (e.g., a merchant's store). In another example, acommunication address of the second person (e.g., the second person'stelephone number; an email address) may be determined. In someembodiments, communication is attempted and/or enabled between the firstand second persons using the determined second communication address.

A fourth aspect of this invention is directed to a method forfacilitating communication between first and second persons so that thefirst person may authorize a transaction between the second person and athird party. The method comprises the steps of associating the first andsecond persons with a financial account that is used for thetransaction, receiving data identifying the financial account and thethird party from the third party, accessing a database based on the dataidentifying the financial account to determine a telephone number of thefirst person, placing a telephone call to the first person based on thetelephone number thereof, and inquiring whether the first person desiresto communicate with the second person. If the first person respondsaffirmatively to the inquiry, a database is accessed based on the dataidentifying the third party to determine a telephone number thereof andtelephonic communication is enabled between the first and second personsusing the telephone number of the third party.

A fifth aspect of the present invention relates to a method forfacilitating communication between an account holder and a user so thatthe account holder may authorize a card-based transaction between theuser and a merchant. The method includes the steps of associating theaccount holder and the user with a financial account associated with thecard that is used for the transaction, wherein the financial account isidentified by an account number. The method further includes the stepsof communicating with the third party to receive the account number anddata identifying the third party, accessing a first database based onthe account number to determine a communication address (e.g., telephonenumber) of the first person, and attempting to contact the first personusing the communication address thereof. When the attempt to contact thefirst person is successful, an inquiry is made as to whether the firstperson desires to communicate with the second person. In response to anaffirmative answer to the inquiry from the first person, a seconddatabase is accessed based on the data identifying the third party todetermine a communication address thereof and communication is enabledbetween the first and second persons using the communication address ofthe third party.

A sixth aspect of this invention is directed to an apparatus forfacilitating communication between a first person at a first locationand a second person at a point-of-sale location so that the first personmay authorize a transaction between the second person and a third partyat the point-of-sale location, wherein the first and second persons areassociated with a financial account used for the transaction. Theapparatus includes a memory storing data identifying the financialaccount and the third party, a first telephone number associated withthe first location, and a second telephone number associated with thepoint-of-sale location.

The apparatus also includes a processor in communication with thememory. The processor is adapted and configured to receive the dataidentifying the financial account and the third party from the thirdparty, access the memory based on the data identifying the financialaccount and the third party to determine the first and second telephonenumbers, transmit instructions to contact the first person based on thefirst telephone number, inquire whether the first person desires tocommunicate with the second person, and enable communication between thefirst and second persons based on a response to the inquiry and thesecond telephone number.

One or more embodiments of the present invention comprise receiving anindication of a first person; associating the first person with anaccount; receiving an indication of a second person; associating thesecond person with the account; receiving a request to authorize atransaction between the second person and a third party; determiningwhether the first person desires to communicate with the second person;and enabling communication between the first person and the secondperson if the first person desires to communicate with the secondperson.

Reference is now made to the accompanying Figures for the purpose ofdescribing, in detail, the preferred embodiments of the presentinvention. The Figures and accompanying detailed description areprovided as examples of the invention and are not intended to limit thescope of the claims appended hereto.

In accordance with the present invention, an account holder (or otherauthorized person) may permit a user to execute transactions with (i.e.,purchase goods from) a merchant using a credit card that is associatedwith the account holder's credit card account. A credit card is deemedto be associated with an account if, for example, a transactioninvolving the credit card affects the balance of the account.

The invention allows the account holder to exercise control over theuser's use of the credit card based on circumstances surrounding thetransaction. This is achieved by enabling communication between theaccount holder and the user so that the account holder can determine thecircumstances surrounding the transaction. For example, in an embodimentin which a parent permits a child to use a credit card only in emergencysituations, the parent can communicate (e.g., telephonically, via videosignals, via audio signals, via email, or via instant messaging) withthe child to ascertain the nature of the emergency. In this way, theaccount holder can choose to authorize or decline the transaction basedon the communication so as to effectively exercise control over theuser's use of the credit card.

FIG. 1 is a schematic illustration of a system for facilitatingcommunication between an account holder and a user so that the accountholder may authorize a transaction between the user and a merchant. Inthis embodiment, the account holder is a parent who maintains a creditcard account with an issuer. The user is a child of the parent that usesan identifier that is associated with the parent's account. Of course,in alternate embodiments an account holder may be any individual ororganization who maintains a credit card account with an issuer and auser may be any individual or organization that uses a credit card thatis associated with the account.

Merchant 10 is a business with whom a user executes a transaction—i.e.,uses a credit card to purchase goods. Merchant 10 facilitatestransactions at a point-of-sale by using a card authorization terminal(“CAT”) 15, such as those well known in the art, for transmitting apurchase authorization request to server 30. As is well known in theart, a purchase authorization request includes data indicating apurchase amount for the goods, an identifier that identifies a creditcard that the user is presenting for payment, an identifier thatidentifies a merchant 10, and an identifier that identifies CAT 15 fromwhich the purchase authorization request is transmitted.

Merchant 10 preferably also has a telephone 20 that is accessible by auser. In this embodiment, telephone 20 is located at the point-of-saleand is in close proximity to CAT 15. In this way, a user can haveunfettered access to telephone 20. Of course, other communicationsdevices such as a computer may be readily substituted for CAT 15 and/ortelephone 20 without departing from the spirit and scope of the presentinvention. For example, CAT 15 and telephone 20 may be combined in asingle device such as the combination CAT/telephone disclosed in U.S.Pat. No. 3,793,624, the disclosure of which is incorporated herein byreference.

CAT 15 and telephone 20 are in communication with telecommunicationsnetwork 25 via lines 15A and 20A, respectively. In this embodiment,telecommunications network 25 is the well-known public switchedtelephone network (PSTN) and lines 15A and 20A are public telephonelines. Of course, other communications networks and lines may be used asdesired.

A telecommunications switch 32 (e.g., a PBX) is in communication withtelecommunications network 25 via line 32A. Telecommunications switch 32also is in communication with server 30 via line 30A and an interactivevoice response unit (“IVRU”) 34 via line 34A. IVRU 34 communicates withserver 30 via line 34B. IVRU 34 provides an interface between server 30and an account holder, allowing voice prompts to the account holder andtransmitting signals received from the account holder to server 30, aswill be further described below. Telecommunications switch 32, IVRU 34,and lines 30A, 32A, 34A, and 34B are well known and therefore are notdescribed here further. See, for example, U.S. Pat. No. 4,847,890, thedisclosure of which is incorporated herein by reference.

Server 30 includes one or more computers that are preferably located atone physical location. Alternatively, server 30 may include multiplecomputers that are connected via a network that spans multiple physicallocations, thereby allowing the computers to communicate with each othervia well-known communication techniques. In this way, as is well knownin the art, memory and processing may be distributed among the computersthat may make up server 30.

Server 30 is operated by or associated with an entity or organization(referred to as the “entity”) that maintains data relating to accountholders' credit card accounts. In the described embodiments, the entityis a credit card issuer. Of course, the entity may be a credit cardprocessing company that operates a network for facilitating processingof credit card transactions, such as First Data Corporation.

Telephone 35 is a telephone that is capable of generating Dual ToneMulti-Frequency (“DTMF”) signals, and that is accessible by an accountholder (or other designated person). Telephone 35 is in communicationwith telecommunications network 25 via line 35A, which in thisembodiment is a public telephone line. Of course, other communicationsdevices (e.g., a desktop computer; a PDA) may be readily substituted fortelephone 35 as desired.

As previously stated, one of many aspects of the present invention isdirected to a method for facilitating communication between a firstperson (e.g., an account holder) and a second person (e.g., a user) sothat the first person may authorize a transaction between the secondperson and a third party (e.g., a merchant). In some embodiments, asdiscussed herein, communication may be enabled between a first personand a second person using a communication device such as the exemplarymerchant telephone 20. Of course, other types of communication devicesfor communicating with the second person may be used in lieu of, or inaddition to, the telephone 20. Also, various embodiments of the presentinvention do not require that a third party have a communication devicethat the second person can use. Thus, in some embodiments, acommunication device 50 may be employed in lieu of, or in addition to,telephone 20, in order to facilitate communication between the secondperson and the first person. Communication device 50 may comprise (i) atelephone (e.g., a cellular or conventional telephone); (ii) a personalcomputer, such as one based on an INTEL® PENTIUM® or CENTRINO™ seriesprocessor; (iii) a Personal Digital Assistant (PDA); (iv) a pager; (v) aradio communication device; and/or (vi) any suitable communicationdevice. Communication device 50 may be owned, operated by, operated onbehalf of, and/or otherwise accessible to the second person (e.g., auser). Communication device 50 preferably is in communication withtelecommunications network 25 via line 50A.

It is noted that the foregoing hardware may include well-known internalconnectors, architectures, interfaces, ports, and communication devices(e.g., modems) to enable processing and communication. For the purposeof simplicity and clarity, a detailed description of the same isomitted.

Referring next to FIG. 2, a diagrammatic representation of an embodimentof server 30 is shown. Server 30 typically includes memory 110, and atleast one processor 120 in communication therewith. Memory 110 typicallyincludes one or more machine readable media. Such media include, as iswell known in the art, an appropriate combination of magnetic,semiconductor and optical media. Memory 110 is preferably capable ofsupporting searching and storing of digital multimedia data such as textand audio. Memory 110 (or portions thereof) may reside on singlecomputer, or may be distributed in a known manner among multiplecomputers that may be included in server 30.

In the present embodiment, memory 110 includes credit card accountdatabase 200, merchant database 300, and user database 400. Transactiondatabase 500 may also be stored in memory 110 to provide additionalfunctionality. Memory 110 also stores program 600, which includesinstructions for controlling processor 120 in accordance with thepresent invention, and particularly in accordance with the processdescribed herein.

The rows and columns of the databases described herein represent recordsand fields thereof, respectively. In the described embodiments, thedatabases are used in a relational arrangement, as is known in the art,so that the databases relate to one another by way of fields that storecommon data. It is noted that while the following description refers tospecific individual databases, formats, records, and fields, thoseskilled in the art will readily appreciate that various modificationsand substitutions may be made thereto without departing from the spiritand scope of the present invention.

Referring now to FIG. 3, an embodiment of credit card account database200 is depicted in detail. Database 200 stores data relating to creditcard accounts that are maintained for account holders. Each record (row)of database 200 represents such an account. For exemplary purposes, tworecords R1 and R2 are shown.

Field 200A stores an account identifier that is associated with and thatuniquely identifies a credit card account. In this embodiment, theaccount identifier is a sixteen digit credit card account number, suchas is commonly imprinted on a credit card. Thus, as is well known, thefirst four digits of each account number indicate the issuer of thecredit card. The remaining twelve digits of each account number are usedto uniquely identify an account. Of course, other types of accountidentifiers may be used as desired. According to an alternativeembodiment, the account identifier need not uniquely identify a creditcard account; a plurality of different account identifiers may be usedto identify the same credit card account.

Field 200B may be used to store the name of an account holder. In oneembodiment, the name stored in field 200B is a digital audio file (or apointer thereto) that contains a pre-recorded audio sample of theaccount holder's name. Of course, an account holder's name may be storedin field 200B in another form, such as text.

Field 200C may be used to store the address of an account holder. Fields200D and 200E may be used to store a credit line and available creditfor an account, respectively.

Referring next to FIG. 4, an embodiment of merchant database 300 isdepicted in detail. Database 300 stores data relating to one or moremerchants 10 with whom a user may execute transactions. One record (row)of database 300 is maintained for each merchant 10. For exemplarypurposes, two records R3 and R4 are shown.

Field 300A stores a merchant identifier that uniquely identifies amerchant 10. For exemplary purposes, the merchant identifier is shown asincluding five digits.

Field 300B may be used to store a CAT identifier that identifies aparticular CAT 15 of merchant 10. Field 300C stores a telephone numberfor a telephone 20 that is accessible by a user. In this embodiment,telephone 20 is located at the point-of-sale and is in close proximityto CAT 15 that is identified by the CAT identifier stored in field 300B.

Field 300D may be used to store a name of a merchant 10. The name may bestored in the form of a digital audio file (or a pointer thereto) thatcontains a pre-recorded audio sample of the name of merchant 10. Ofcourse, a merchant's name may be stored in field 300B in another form,such as text.

Referring next to FIG. 5, an embodiment of user database 400 is depictedin detail. Database 400 stores data that enables an account holder tocommunicate with a user to determine at least a portion of thecircumstances surrounding a transaction that is being executed by theuser. One record (row) of user database 400 is maintained for eachcredit card that is associated with a credit card account represented bya record in database 200. For exemplary purposes, two records R5 and R6are shown. Of course, more than one record may be maintained for eachcredit card.

Field 400A stores a user identifier that is associated with and thatuniquely identifies a credit card that is associated with a credit cardaccount represented by a record in database 200. In this embodiment, theidentifier stored in field 400A is a sixteen digit credit card accountnumber, such as the type commonly imprinted on a credit card. The useridentifier need not be associated with nor uniquely identify a creditcard that is associated with the credit card account. For example, theuser identifier may be directly associated with the credit card account.As will be described in more detail below, a user uses the credit cardidentified by the identifier stored in field 400A to execute atransaction with a merchant 10. Field 400B stores an account identifierthat is associated with and that uniquely identifies a credit cardaccount to which the credit card identified by the user identifierstored in field 400A is linked.

In this embodiment, the user identifier stored in field 400A is made todiffer from the account identifier stored in field 200A so that thepresentation of a user identifier would initiate transaction process601. Preferably, the length of the user identifier is the industrystandard length of sixteen digits. Of course, the user and accountidentifiers stored in fields 400A and 200A may be designed to be thesame. In this case, field 400B would not be necessary.

Field 400C stores a fee that is charged to the balance of the accountholder's account for each transaction initiated by the presentation ofuser identifier 400A. The fee may be determined in a number of differentways. For example, the fee may be based on the amount of time that anaccount holder communicates with a user or it may be a fixed dollaramount that is charged to the balance each time that a credit card isused by a user. In another embodiment, the fee may be charged on aperiodic basis—e.g., each year, regardless of the number of times that acredit card is used. In still another embodiment, the fee may be apercent of the transaction amount. In any of these embodiments, the feealso may be made to vary in accordance with the type of credit card. Forexample, if a credit card is a “gold” card, then a $25 annual fee may becharged. Alternatively, if a credit card is a “platinum” card, there maybe no associated fee.

Field 400D may be used to store the name of a user. The name stored infield 400D may be a digital audio file (or a pointer thereto) thatcontains a pre-recorded audio sample of the user's name. Alternatively,a user's name may be stored in field 400D in another form, such as text.

Field 400E is used to store a telephone number of a telephone 35. In thepresent embodiment, it is the telephone number of an account holder. Inalternate embodiments, it may be a telephone number of another person,such as a relative of the user.

Field 400F may be used to store a length of time (e.g., a number ofminutes) that an attempt will be made to contact an account holder (orother person) at telephone 35 using the telephone number stored in field400E. If this time elapses, a default command stored in field 400G maybe executed. In one embodiment, the default command indicates whether atransaction should be authorized or declined in the event that theaccount holder (or other person) cannot be contacted.

In addition, or alternatively, user database 400 may include informationabout criteria for the circumstances under which the account holdershould or should not be contacted, or under which the account holdermust provide authorization. For example, such criteria may includecertain classes of merchants (by Standard Industrial Classification(“SIC”) code and/or Merchant Category Code (“MCC”)) with whom thetransaction is made, a maximum amount of money charged to the card,and/or a time period in which the transaction occurs.

FIG. 6 depicts, in detail, an embodiment of transaction database 500.Database 500 may be used to store data relating to transactions executedby a user using a credit card that is associated with an account storedin database 200. It may also be used to store data relating toconventional transactions involving other credit cards. For exemplarypurposes, three records R7-R9 are shown.

Field 500A is used to store either a user identifier or an accountidentifier. If a record represents a transaction between a user andmerchant 10 in which a credit card that is associated with a credit cardaccount represented by a record in database 200 was used, then a useridentifier stored in field 500A identifies that credit card, asdescribed above with reference to field 400A (FIG. 5). Records R7 and R8represent such records. If a record represents a transaction between anaccount holder and a merchant using another credit card, then theidentifier stored in field 500A represents the credit card number ofthat credit card. Record R9 represents such a record.

Field 500B stores an authorization code that is generated in awell-known manner by server 30 when it authorizes a transaction. Field500C stores a record of charge identifier that is printed on a receiptand used to help the user and/or the account holder identify thetransaction. The identifier stored in field 500C is generated by server30 in a well-known manner. Field 500D stores either a dollar amountspent by a user for a transaction or a fee that is to be charged to thecredit card account, the latter of which is described with reference tofield 400C (FIG. 5).

Field 500E may be used to indicate whether the value stored in field500D represents such a dollar amount or a fee. As shown in record R7, ifthe charge description stored in field 500E indicates a name of amerchant 10 (e.g., “ABC Drug Store”), then the amount stored in field500D represents a transaction amount, here, $250.38. For example, asshown in record R8, if the charge description stored in field 500Eindicates “Emergency Card Usage Fee,” then the amount stored in field500D represents a fee—e.g., $20.00. Fields 500F and 500G store amerchant identifier and a CAT identifier, respectively, as describedabove with reference to field 300A and 300B.

It is noted that given a first record relating to a transaction, asecond record relating to an associated fee may be determined. This isbecause the first and second records will have identical useridentifiers stored in field 500A. Thus, for example, record R7represents a transaction for “$250.38” and record R8 represents anassociated “$20.00” usage fee. Consequently, both records R7 and R8 havethe same user identifiers—i.e., “2222-3333-4141-5151.”

Referring again to FIG. 2, memory 110 also includes program 600. Program600 comprises computer instructions and/or data, executable orotherwise, for performing the functionality of the present invention.FIGS. 7A and 7B depict process 601 that may be embodied by such aprogram 600 for processing a credit card transaction and facilitatingcommunication between first and second persons so that the first personmay authorize a transaction between the second person and a merchant.

Prior to execution of process 601 it is contemplated that an accountholder and a user have been associated with a credit card account forwhich a record is maintained in database 200 (FIG. 3). This may beaccomplished via a registration-type process whereby a user isregistered with a credit card such that transactions executed with thecredit card will affect the balance of the account holder's account.

At step 602, a user begins to execute a transaction with a merchant 10.To do this, the user presents a credit card that is associated with anaccount stored in database 200 (FIG. 3) to a merchant 10 for payment.The credit card has an identifier imprinted thereon and/or encodedtherein, which corresponds to a user identifier stored in field 400 ofdatabase 400 (FIG. 5).

Using conventional techniques, merchant 10 uses CAT 15 to transmit apurchase authorization request to server 30 via line 15A,telecommunications network 25, line 32A, telecommunications switch 32,and line 30A (FIG. 1). In this embodiment, the request includes dataindicating a purchase amount for the goods, an identifier thatidentifies the credit card that the user is using for payment, anidentifier that identifies merchant 10, and an identifier thatidentifies CAT 15 from which a purchase authorization request is beingtransmitted. The purchase authorization request may be routed through acredit card processing network (not shown) to server 30 in a well-knownmanner. Server 30 receives the purchase authorization request from CAT15.

At step 604, processor 120 of server 30 accesses the record in userdatabase 400 whose field 400A corresponds to the identifier thatidentifies the credit card that was received at step 602. Processor 120retrieves the account identifier stored in field 400B for the accessedrecord. Processor 120 accesses the record in credit card accountdatabase 200 for the retrieved account identifier and retrieves theavailable credit stored in field 200E. At step 606, if the availablecredit stored in field 200E is determined to be less than the purchaseamount received at step 602, then the transaction is terminated at step608 and process 601 is complete.

If the available credit stored in field 200E is determined at step 606to be greater or equal to the purchase amount received at step 602, thenprocessing continues. At step 610, processor 120 retrieves the name ofthe user and the account holder's telephone number from fields 400D and400E, respectively, for the record in user database 400 that wasaccessed at step 604. Processor 120 also retrieves the name of theaccount holder from field 200B for the record in credit card accountdatabase 200 that was accessed at step 604.

An inquiry is made whether the account holder desires to communicatewith the user. In this embodiment, at step 612, the telephone numberretrieved at step 610 is used by IVRU 34, under control of processor 120and telecommunications switch 32, to attempt to connect the accountholder. Thus, IVRU 34 places a telephone call to telephone 35 using thattelephone number in a conventional manner.

At step 614, it is determined whether the account holder has beencontacted. If the account holder has not been contacted, then a featureof the present invention may be executed at step 616. In accordance withthis feature, if the account holder cannot be contacted within theperiod of time specified in field 400F for the record in user database400 accessed at step 604, then the default command stored in field 400Gfor that record is retrieved and executed. Thus, if the retrieveddefault command is “AUTHORIZE,” then processor 120 will authorize thetransaction in a conventional manner. Alternatively, if the retrieveddefault command is “DECLINE,” then processor 120 will decline thetransaction in a conventional manner. If this feature is not includedand the account holder cannot be contacted, then the transaction may beterminated. If it is determined at step 614 that the account holder hasbeen contacted, then at step 618 processor 120 instructs IVRU 34 topresent a list of options to the account holder. For example, IVRU 34may cause the following message to be played to the account holder:“Hello Mr. Johnson, you have a transaction authorization request fromJoe Smith for $250.38 at ABC Drug Store. Press 1 if you wish toauthorize this transaction. Press 2 if you wish to decline thistransaction. Press 3 if you wish to talk with Joe Smith.” The underlinedtext may be played by IVRU 34 to the account holder by accessing therelevant voice files, or other data in the case of a monetary amount, inthe appropriate databases. The account holder responds by depressing thenumber “1,” “2,” or “3” on the keypad of telephone 35 and a signalindicative of the response is transmitted to server 30 in a conventionalmanner. In an alternate embodiment, the list of options may be presentedto the account holder by a human operator.

At step 620, processor 120 determines whether the account holder desiresto communicate with the user. If processor 120 received a signalindicating that the user depressed the number “1” or “2” on his keypad,then the account holder does not desire to communicate with the user andprocessing continues at step 622.

If processor 120 received a signal indicating that the user depressedthe number “3” on his keypad, then the account holder does desire tocommunicate with the user. In this case, at step 624, processor 120enables or initiates communication between the account holder and theuser. In this embodiment, processor 120 accesses the record in merchantdatabase 300 whose field 300B corresponds to the CAT identifier that wasincluded in the purchase authorization request received at step 602.Processor 120 retrieves the telephone number stored in field 300C forthat record.

The retrieved telephone number is used by IVRU 34, under control ofprocessor 120 and telecommunications switch 32, to place a telephonecall to the user at telephone 20 in the proximity of CAT 15. The methodand apparatus disclosed in U.S. Pat. No. 5,319,701, incorporated hereinby reference, may be used to establish connection between telephone 35and telephone 20 so that the account holder may communicate with theuser before authorizing or declining the transaction at step 622.

In some embodiments, the processor 120 may enable or initiatecommunication between the account holder and the user by accessing oneor more second person communication addresses, which may be stored inthe user database 400. Exemplary second person communication addressesinclude, but are not limited to, (i) telephone numbers, (ii) pagernumbers, (iii) Internet Protocol addresses, (iv) email addresses, and/or(v) instant or text messaging addresses (e.g., AMERICA ONLINE® INSTANTMESSENGER™ addresses). Other types of addresses will be readilyunderstood by those skilled in the art in light of the presentdisclosure. In some embodiments, a second person communication addressmay comprise an identifier that identifies the second personcommunication device 50 (e.g., a telephone number if the communicationdevice is a telephone). The processor 120 may then, in turn, use one ormore of the second person communication addresses to establishcommunication between the account holder and the user via the secondperson communication device 50. In some embodiments, the processor 120may provide the second person communication address to the first personso that the first person can contact the second person.

Embodiments featuring a communication device 50 may be desirable insituations where a merchant phone 20 or other third-party communicationdevice is not available, such as where the merchant does not have aphone in close proximity to the merchant CAT 15, or where the merchantdoes not wish to let customers use the merchant phone 20. Further,embodiments featuring a communication device 50 may be desirable insituations where the merchant is geographically remote from the user.For example, where a user attempts to purchase a product from a remotemerchant over the phone or through the Internet (e.g., via a merchant'sWebsite), communication may be enabled or initiated between the accountholder and the user using a communication device 50 (e.g., by initiatingan instant messaging session on the user's computer).

The account holder and the user may communicate to discuss thecircumstances surrounding the transaction. For example, consider anaccount holder who has a parental relationship with the user. Furtherconsider that the parent permitted the child to use the credit card onlyin cases of emergency. In such an instance, the parent and child maycommunicate to discuss the nature of the emergency. In one embodiment,processor 120 is configured to track the duration of the communicationso that a fee can be charged to the financial account based on theduration.

At step 622, based on the communication, the account holder canauthorize or decline the transaction using telephone 35. To do so, theaccount holder depresses the number “1” or “2” on the keypad oftelephone 35. A signal indicative of that response is transmitted toserver 30 in a conventional manner at which point the command isexecuted. In an alternate embodiment, the account holder may enter apersonal identification number via the keypad of telephone 35 in orderto authorize or decline the transaction. In this case, the signaltransmitted to server 30 comprises a personal identification number. Atstep 626, processor 120 continues processing the transaction inaccordance with the response of the account holder at step 618 or 624.Thus, if the account holder authorized the transaction, then anauthorization code is generated in a conventional manner, which istransmitted to CAT 15 that communicated the purchased authorizationrequest to server 30 at step 602. The transaction database 500 isupdated as follows: the identifier identifying the credit card, thepurchase amount, the identifier identifying the merchant, and the CATidentifier received in the purchase authorization request at step 602are stored in fields 500A, 500D, 500F, and 500G, respectively.

An authorization code is generated and stored in field 500B. The recordcharge identifier is stored in field 500C. The charge description isobtained from the merchant database 300 by reading field 300D for therecord identified by the merchant identifier received in the purchaseauthorization request received at step 602.

At step 628, a record is also populated in the transaction database 500to reflect the emergency charge. More specifically, the identifieridentifying the credit card, the identifier identifying the merchant,and the CAT identifier received in the purchase authorization request atstep 602 are stored in fields 500A, 500F, and 500G, respectively. Thetransaction usage fee is obtained from user database 400 and is storedin field 500D. An authorization code is generated and stored in field500B. The record charge identifier is stored in field 500C. The chargedescription “Emergency Card Usage Fee” is stored in field 500E. Process601 ends at step 630.

In an alternate embodiment, communication with merchant 10 may beterminated prior to accessing database 400 at step 610 to determine thetelephone number of the account holder. In this way, processor 120 ofserver 30 may receive a signal from an account holder indicating whetherto authorize the transaction. When the signal indicates that thetransaction is to be authorized, processor 120 of server 30 mayre-establish communication with merchant 10 and transmit anauthorization code thereto. According to another embodiment of thisinvention, if the account holder has not been contacted at step 612,then processor 120 may instruct IVRU 34, under control of processor 120and telecommunications switch 32, to attempt to contact another person(e.g., a relative of the user) who can authorize or decline thetransaction. Also, the other person may be selected from among severalpeople depending on the time of day that the data identifying thefinancial account and the third party is received. In this case, userdatabase 400 may be modified in a well-known manner to include thename(s) and telephone number(s) of each person, as well as the time ofday that a person is to be contacted if this latter embodiment isimplemented. Each person may be contacted as described above withreference to the account holder and processing would proceed as if theperson was the account holder.

In view of the foregoing, the present invention provides a method andapparatus in which an account holder can remotely control theauthorization or denial of a card-based transaction executed by a user.The method and system enable the account holder to communicate with theuser who is using a credit card to execute the transaction with amerchant. In this way, the account holder and the user can discuss thecircumstances surrounding the transaction and the account holder canauthorize or decline the transaction based on those circumstances.Various embodiments also allow the account holder to communicate withthe merchant, the merchant's representative, or cashier. For example,the account holder may not trust the user to communicate the truecircumstances of the transaction. Thus, the account holder is able toadequately control and manage charges made by users using credit cardsthat are associated with their accounts.

While the foregoing embodiments have been described with reference to acredit card and corresponding credit card account, it is contemplatedthat other types of transaction cards and financial accounts may beused. Such financial cards may include, for example, prepaid cards,debit cards and smart cards and their associated financial accounts.Also, some embodiments of the present invention may use accounts havingredeemable points or other alternative currency (e.g., frequent flyermile accounts, EBAY® ANYTIME POINTS™), or payment accounts (e.g.,PAYPAL®) that may be linked to one or more financial accounts.

Other types of accounts, such as checking accounts, may also be used.For example, a checking account holder can control the authorization ordenial of a transaction involving the use of a paper check or of a checkguarantee card. Various embodiments of the present invention enable theaccount holder to communicate with the user who is using a check orcheck guarantee card to execute the transaction with a merchant. In thisway, the account holder and the user (or merchant) can discuss thecircumstances surrounding the transaction and the account holder canauthorize or decline the transaction based on those circumstances.

It is contemplated that transaction cards such as a casino playertracking cards may also be used. For example, a casino player trackingcard holder can control the use of the casino player tracking card for atransaction (e.g., play of a slot machine; presentation at a restaurant,casino, or hotel). Further, transaction cards need not be associatedwith a financial account. Cards corresponding to financial, membership,and/or identity accounts, such as health insurance cards, medical cards,automobile club membership cards, discount club membership cards, orhealth club cards, may also be used in various embodiments of thepresent invention, where the user seeks to use the card in a transaction(e.g., seeking automobile club services, seeking medical services).

Various embodiments of the present invention provide for enabling thedesignation of a person who can control the authorization or denial of acard-based transaction executed by a user. The controlling individualmay be designated by the account holder, or, alternatively, by theissuer of the transaction card. The controlling individual may evencontrol the authorization or denial of a card-based transaction wherethe account holder is seeking to use the card. For example, a relativeof an ailing family member may be designated as a controlling individualin order to prevent the ailing or elderly family member from abuse ormisuse of a financial account for which the ailing or elderly familymember remains responsible. In another example, a parent may bedesignated as a controlling individual for a credit card account forwhich her son is the sole account holder. In this way, an account holdermay enjoy many of the benefits of being an account holder, but a checkremains in place against any potential abuse of the account by theaccount holder. A controlling individual may be an account holder. Forexample, a joint account holder may be a controlling individual withrespect to another joint account holder. Also, more than one person maybe designated as a controlling individual. Where more than onecontrolling individual is designated, consent may be required from onlyone controlling individual, from at least a minimum number ofcontrolling individuals, or from all controlling individuals.

To illustrate still other alternate embodiments, consider that controlof cash withdrawal at an Automatic Teller Machine (ATM) can be remotelyauthorized by the account holder upon presentation of the useridentifier 400A at the ATM. In this embodiment, the communicationbetween the account holder and the user can be facilitated using audioand/or video transmission. In an audio-based embodiment, communicationmay be facilitated using the above-referenced telephone connections. Ina video-based embodiment, communication may be facilitated between apersonal computer or video phone connected to the ATM network and theATM. In this video embodiment, video images of the parties may be inputthrough video cameras and transferred during the communication. Thepersonal computer may use well-known video cameras, such as thosecommonly manufactured by Intel Corp. The ATM may use its residentsecurity camera. As such, the account holder is able to see a graphicalimage of the user on the screen of the account holder's personalcomputer during the transaction to ensure that the user presenting acard having user identification number 400A is in fact authorized.

Thus, although the particular embodiments shown and described above areuseful in many applications relating to the arts to which the presentinvention pertains, further modifications of the present inventionherein disclosed will occur to persons skilled in the art. All suchmodifications are deemed to be within the scope and spirit of thepresent invention as defined by the appended claims.

What is claimed is:
 1. A method comprising: receiving, by a server incommunication via a telecommunication network with at least onemerchant, a request to authorize a transaction between a second personand a third party; determining, by the server, a first communicationaddress of a first person associated with the second party and with anaccount; facilitating, via the server, contact with the first person viathe first communication address; determining, by the server, a secondcommunication address of the second person; initiating, by the server, acommunication between the first person and the second person; andreceiving, by the server, a signal indicating that the first personauthorizes the transaction.
 2. The method of claim 1, further comprisingtransmitting the signal to the third party.
 3. The method of claim 1,wherein the account comprises a credit card account; and furthercomprising: transmitting the signal to a card authorization terminal. 4.The method of claim 1, wherein the first person is a controllingindividual associated with the account.
 5. The method of claim 1,further comprising: determining a monetary amount based on thecommunication; and charging the monetary amount to the account.
 6. Themethod of claim 1, wherein initiating the communication between thefirst person and the second person comprises: enabling communicationbetween the first person and the second person via a device, the devicecomprising at least one of a telephone, a cell phone, a radio device, apersonal digital assistant, and a computer.
 7. The method of claim 1,wherein initiating the communication between the first person and thesecond person comprises: enabling text-based communication between thefirst person and the second person.
 8. The method of claim 1, whereininitiating the communication between the first person and the secondperson comprises: enabling audio communication between the first personand the second person.
 9. The method of claim 1, wherein initiating thecommunication between the first person and the second person comprises:enabling video communication between the first person and the secondperson.
 10. An apparatus, comprising: a processor; and a memory storinginstructions configured to direct the processor to: receive a request toauthorize a transaction between a second person and a third party;determine a first communication address of a first person associatedwith the second party and with an account; facilitate communication withthe first person via the first communication address; determine a secondcommunication address of the second person; initiate a communicationbetween the first person and the second person; and receive a signalindicating that the first person authorizes the transaction or declinesthe transaction.